On January 1, 20Y5, Fahad Ali established Mountain Top Realty, which completed the following transactions during the month:

Jan.	1	Fahad Ali transferred cash from a personal bank accountto an account to be used for the business, $30,000.
	2	Paid rent on office and equipment for the month, $2,450.
	3	Purchased supplies on account, $2,200.
	4	Paid creditor on account, $850.
	5	Earned fees, receiving cash, $14,940.
	6	Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $470.
	7	Paid office salaries, $2,000.
	8	Determined that the cost of supplies used was $1,100.
	9	Withdrew cash for personal use, $3,200.

Required:

1.

Journalizeentries for transactions Jan. 1 through 9. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

2.

Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine the account balances after all postingis complete. Accounts containing only a single entry do not need a balance. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank.

3.

Prepare an unadjusted trial balanceas of January 31, 20Y5.

4.

Determine the following:

	a. Amount of total revenuerecorded in the ledger.
	b. Amount of total expensesrecorded in the ledger.
	c. Amount of net income for January.

5.

Determine the increase or decrease in owners equityfor January.

Chart of Accounts

CHART OF ACCOUNTS

Mountain Top Realty

General Ledger

	ASSETS
11	Cash
12	Supplies

	LIABILITIES
21	Accounts Payable

	EQUITY
31	Fahad Ali, Capital
32	Fahad Ali, Drawing

	REVENUE
41	Fees Earned

	EXPENSES
51	Rent Expense
52	Office Salaries Expense
53	Automobile Expense
54	Supplies Expense
55	Miscellaneous Expense

Journal

1. Journalizeentries for transactions Jan. 1 through 9. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

T Accounts

2. Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine the account balances after all postingis complete. Accounts containing only a single entry do not need a balance. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank.

Cash
Jan. 1		Jan. 1
Jan. 2
Bal.

Supplies
Bal.

Accounts Payable
Bal.

Fahad Ali, Capital

Fahad Ali, Drawing

Fees Earned

Rent Expense

Office Salaries Expense

Automobile Expense

Supplies Expense

Miscellaneous Expense

Unadjusted Trial Balance

3. Prepare an unadjusted trial balanceas of January 31, 20Y5.

Mountain Top Realty

UNADJUSTED TRIAL BALANCE

January 31, 20Y5

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Supplies
3	Accounts Payable
4	Fahad Ali, Capital
5	Fahad Ali, Drawing
6	Fees Earned
7	Rent Expense
8	Office Salaries Expense
9	Automobile Expense
10	Supplies Expense
11	Miscellaneous Expense
12	Totals

Final Questions

4. Determine the following:

	a. Amount of total revenuerecorded in the ledger.
	b. Amount of total expensesrecorded in the ledger.
	c. Amount of net income for January.

5. Determine the increase or decrease in owners equityfor January.